Xie Yizhen, director of the Singapore Financial Administration, met with Wu Qing, chairman of the China Securities Regulatory Commission in Shanghai on June 19, and exchanged issues such as the development and regulatory dynamics of the new China capital market and supervision, bilateral regulatory exchanges and cooperation.This report aroused market reveries.
The author believes that China is currently facing economic downturn, heavy real estate and local debt crisis, and low stock markets. Officials at all levels in China are preparing to attract foreign capital with greater efforts.Singapore's HKMA and exchanges may wish to seize the opportunity to refer to the successful experience of Shanghai -Hong Kong Stock Connect and Shenzhen -Hong Kong Stock Connect, and make every effort to promote the interconnection of the stock markets of the two countries.This move can not only completely activate the Singapore stock market, but also firmly stabilize Singapore as the core position of the Asian Financial Center and the Wealth Management Center.In particular, the Singapore economy currently focusing on international trade, the performance of the second quarter of this year may continue to weaken.The interconnection of the new Chinese stock market can boost the securities and financial industry in Singapore, which coincides with the time.
The cumulative turnover of nine years in the northbound and Shanghai Stock Connect and Shenzhen Stock Connect exceeded 1 million yuan (RMB, about S $ 18.7 trillion, the same below).At the end of September 2023, the data showed that the domestic RMB stock assets held by the Northbound Fund were approximately 2.23 trillion yuan, accounting for about 3.2%of the market value of A shares.Between 2018 and 2021, the northern -oriented funding for four consecutive years was more than 200 billion yuan.In 2022 and 2023, the amount of A -share buying A shares of the year fell to 90 billion yuan and 43.7 billion yuan, respectively.Since May of this year, Hong Kong's northbound funds have no longer disclosed real -time transactions.Needless to say, China's capital market will continue to use Hong Kong as a single window to attract foreign capital and improve the effect of investor structure.
In contrast, the Singapore wealth management industry has continued to spray recently, and has become one of the cities with the highest density of high -net -worth individuals in Asia.According to the 2022 Wealth Report of Laifang, with a net worth reaching at least 1 million US dollars as the threshold, Singapore has reached 526,000.If the total population is calculated by 5.7 million people, the net assets million dollars are close to 9.2%of Singapore's total population.However, the Singapore stock market is weak. The Singapore Stock Exchange strives to attract Chinese concept stocks as the second or third listing place, but the transactions are not active enough.
Under the current circumstances, if Xinzhong can develop the interconnection of the stock market, from the perspective of China, it can attract valuable off -site funds to the current downturn's A -share market and improve trader's structure.It will completely activate the local stock market and consolidate the status of Asian financial centers.
From the perspective of specific implementation measures, the trading mechanism and successful experience of the Shanghai -Hong Kong Stock Connect and Shenzhen -Hong Kong Stock Connect are worthy of referenceNot recognized by the market.From the interoperability exchange, if the stock reform of the Shanghai and Shenzhen cities is difficult, the New Stock Exchange and the Beijing Stock Exchange can also pilot interconnection first, and the difficulty of incremental reform will be less.
(The author is a Singapore asset manager, worked at the China Securities Management Supervision Committee)
